A massive generator of employment opportunities, small and medium-sized industries are the driving force behind jump-starting economic development. NBFCs are becoming the ultimate solution for availing SME business loans. With utmost emphasis on digital media platforms for gauging the borrowers' loan eligibility, the traditional lending norms for obtaining SME business loans are being uprooted and stashed away by many.
Zero collateral requirements accompanied by hassle-free processes, minimum documentation, and flexible repayment periods help SME business loans play a significant role in giving SMEs all the assistance they require in every stage of their operation.
What is an SME business loan?
Loans that are provided by NBFCs for catering to a wide range of financial needs of SMEs are called SME business loans. However, refusal of payments through Demand Draft and cheque mediums, sets them apart from banking institutions.
Benefits of an SME business loan
Whether one does not possess the necessary funds to expand business or meet inventory expenses, SME business loans are committed to providing SMEs with monetary assistance required for their successful operation.
With this loan service extending its arms to the service as well as the manufacturing industry, an SME business loan is an efficient financing option for getting all your SME business monetary requirements in shape.
Upon acquiring an SME business loan, a rigid tenure for its repayment is not something that one has to encounter. An elastic 12 to 24 months repayment period marks it to be a convenient financing option for small-business owners. Electronic fund transfer or monthly EMIs on the lenders' website- an SME business loan can be repaid in any mode one finds to be convenient. With effect from March 1 2020, the EMI payments of SME business loans have been cushioned with a three-month moratorium period to assuage the COVID-19 impact on businesses all across.